1) Suppose Tom Sawyer invested $5000 in stocks and the investment grew exponentially to $5871.20 in three years.               The growth function is given as:  f (t) = Y0bt Where:             Y0 = initial amount invested              b = growth rate, and              t = time in years How much will the investment be worth in 15 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 16P
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1) Suppose Tom Sawyer invested $5000 in stocks and the investment grew exponentially to $5871.20 in three years.

 

            The growth function is given as:  f (t) = Y0bt

Where:

            Y0 = initial amount invested

             b = growth rate, and

             t = time in years

How much will the investment be worth in 15 years?

 

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